Felling and Pelaw leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Felling and Pelaw enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Felling and Pelaw you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
Lease extensions in Felling and Pelaw can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Felling and Pelaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Harry, started to get near to the eighty-year mark with the lease on his leasehold flat in Felling and Pelaw. Having purchased his property two decades ago, the lease term was of no bearing. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Harry extended the lease just under the wire in June. Harry and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If the lease had fallen below 80 years, the price would have increased by a minimum £1,125.
Last August we were approach by Dr Ibrahim Norbert , who purchased a first floor flat in Felling and Pelaw in August 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Felling and Pelaw with an extended lease were valued about £257,800. The average ground rent payable was £65 collected monthly. The lease expiry date was in 2091. Taking into account 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus fees.
Last year we were approach by Mrs Hollie Sharif , who owned a first floor apartment in Felling and Pelaw in January 2000. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar properties in Felling and Pelaw with an extended lease were in the region of £196,400. The mid-range amount of ground rent was £55 billed yearly. The lease termination date was on 11 August 2080. Given that there were 54 years remaining we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including costs.